Tuesday, April 16, 2013

I missed the boat, but it looks like a long voyage

A few weeks back I jump on a few stocks, Delta (DAL), Facebook (FB), Netflix (NFLX) and Whole Foods  (WFM). So far the results are still mixed to suck, up 5% in Delta, down 1% in Whole Foods, down 7% in Facebook and down 4% in Netflix.  If the last 2 don't start performing soon, they're going bye bye. My concern with Facebook is I still just don't see them as being worth what the market says they are. Yeah, I bought it, but it was more trying to catch the wave from $17-27 than having real faith. I'm getting my just deserts. Netflix I have more faith in right now.Whole Foods is looking more like a very long play. Go Delta.

This morning I jumped on 2 that I got beat down big time on last year: Federal Home Loan Mortgage Corporation (FMCC) and Federal National Mortgage Association. (FNMA)."Fannie Mae" and "Freddie Mac".  I had bought both a few years back at about $1/share. They dropped to $.33 and stayed there after the housing crisis.  I tried to hang on but finally bit the bullet and took my losses.  Here's the thing, if you look at their 7 year chart, Freddie Mac used to sell for $80/share before the crash, Fannie Mae about $90. They're now around $.75. No, that's not a typo. On about March 14th they both shot up to about My perspective is they were backed by the government then, and they still are. If they never hit those levels again, heck, if they only hit $8 and $9/share, that's a hundred fold return. I've been watching them a week or so and they both look like they're holding at the current rate. As a matter of fact, FNMA is up 7% already. Sweet...

I had a McDonald's coffee this morning. It tasted like grilled water. Subway has passed McDonalds as the largest fast food outlet, and McDonalds coffee tastes like grilled water. Seems like somebody is phoning it in....

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